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14/7/25 8:13 pm
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Rents continue to rise at a historically high rate and the Government’s renting reforms are to blame, a leading estate agency has said.
Knight Frank has made the comments following the latest official rent data from the Office for National Statistics, which reveals that although rent rises have softened recently, they remain high at 5% a year, the data for last month shows.
Tenants across the UK are paying on average a monthly rent per property of £1,360, or £1,416 in England, £817 in Wales, £1,008 in Scotland and £866 in Northern Ireland.
Rent increased over the past year the fastest in England by 8.6% but less elsewhere.
Tom Bill (pictured), head of UK residential research at Knight Frank, says: “Rental growth remains high by historical standards, as supply continues to be squeezed.
“The Renter’s Rights Act creates uncertainty over the setting of rents and rules around repossession and selling, which means more landlords are trying to leave the sector.
“If the government decides to levy National Insurance on rental income at the Budget next week, supply will get even tighter and upwards pressure on rents will intensify.”
Other letting agents agree including Jeremy Leaf, who operates in North London, who says: “Rents are softening a little, particularly for affordability reasons, and would have drifted even lower as far as we are concerned if it wasn’t for the lack of stock supporting values”.
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, says: “Rental inflation may be easing, but that doesn’t mean pressure in the private rented sector has disappeared. Many tenants still face high rents, and the underlying structural issue remains unchanged, with demand continuing to outstrip supply.
“Boosting the number of homes available to tenants is crucial and to achieve that means creating an environment where investment in the sector is not only viable but encouraged. While positive for the sector, the recent progression of the Renters’ Rights Act brings into focus the need to strike the right balance between tenant protections and the long-term sustainability of the sector.
“As we look ahead to the Budget, this is an opportunity for Government to demonstrate that it values the role of responsible landlords in providing the homes that millions rely on. A stable regulatory and economic framework is critical if we are to reverse the ongoing imbalance between rental demand and supply.”
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